tv Worldwide Exchange CNBC March 23, 2015 5:00am-6:01am EDT
happy monday everyone. welcome to "worldwide exchange." i'm seema moody. i'm willfred frost. >> wall street worries about the impact of the surging dollar on corporate earnings but st. louis president tells cnbc the green back is not far from far value. >> i'm not saying this isn't a problem. but on the other hand the multinational firms know there are currency markets out there that have strategies and they make a bet. >> intense negotiations expected in berlin as the prime minister prepares to meet german
chancellor angle merkel over the ongoing tensions amid at then's plans. >> ted cruz throws his hat in the ring for 2016. he announces he's running for the white house on twitter. becoming the first major party candidate to get into the race. health care is close to a deal to buy united surgical partners as it responds to changes in the u.s. health care system. and welcome everyone to the show. you're watching worldwide"worldwide exchange" exchange". last week investigator discussion was dominated by janet yellen the dubbish fed statement taking the market by surprise. the s&p 500 gained about 1% last week. the health care law having to do with the rally we seaaw in bio tech on friday. there's a lot of numbers we're
watching. but here in the u.k. ftse 100. >> absolutely. closing on friday at a record all time high. just off this morning. we saw u.s. equities rally hard because the fed was dubbish suggesting it won't tighten as soon as people expected. that's why the ftse 100 went up. the mpc on thursday wasn't quite as hawkish as people expected pushing back rate expectations. we're only two weeks into the ecb bond buying program and u.k. and u.s. equities outperformed european equities. >> it's amazing to watch. the stronger dollar the impact it has. we'll get you the sound byte from bullard. take a look at futures this morning. the dow down just about 32 points. after the rally we saw on friday the s&p 500 down just about four
points. in europe talks around greece's financial structure will be something that traders watch with ongoing discussions going on between greek prime minister and german prime minister. we'll watch for the ongoing discussions to take place. we're down significantly here on monday. we're look at the xetra tax. the cac 40 holding on 5,000 down about 29 points. ftse 100 surpassing 7,000. a milestone for the u.k. on friday. still holding on to the level but down about 15 points. i wonder the reason for the european equities trading lower. maybe a little bit of profit booking after last week or lingering concerns over greece. >> absolutely. i think there's a property. european equities weren't strong as the u.k. and the u.s. last week. they have been positive year to date. let's look at the rates. it was a roller coaster week for
the u.s. dollar last week. it softened and then since then we've had strong moves in both directions. the overall thought of where we stand this monday compared to last monday is the u.s. dollar a little bit weaker than it was but continuing on a trend that it had been. it feels more like a correction relatively significant correction than an outright change in direction and trend as you can' can see. the euro weakened today. we're off the 105 106 handle. but of course a week euro dollar. let's see we have the flat u.s. dollar against the yen at 120 pretty much bang on. the aussie dollar looking at 0.77. and sterling 1.4846. sterling is significant down this morning 0 pntd 7%. let's have a look at bonds. it's a good indicator what to expect for rate rise
expectations. my take if we are above 2 % on the 10 year we're expecting something before september. if we are below we're probably expecting something around september or a little bit later. we're below at the moment 193. that move below 2% came when january janet yellen was a little more dubbish. low yields across europe. important discussions between merkel and sipp russ today. where is the rally in the u.s. dollar was brief and volatile. we had similar moves in the oil price. but still around 6 year lows. 45.4 for wti. 54.4 for present. let's check in on markets in asia. we are standing by in singapore. over to you. >> thank you very much for that. we had a reasonably stronger wall street at the tail end of last week.
so that's benefitted the asian markets. earlier on in the trading day. but as you can see sop of the gains are evaporating and most of the markets coming off from the best levels of the day. it was a stark -- shanghai come site were the standouts today. new, fresh 15-year closing high for the nikkei. so strong performance for those two. the story in the shanghai is that the property developers did very well today on expectations that they could see more stimulus heading in their direction. i want to give you just a brief word about singapore and the singapore market. stable at 3,415 we are mourning the loss of singapore's founding father the elder statesmen and the first prime minister of this country lee kuan yew.
he passed away earlier this morning just after 3:00 a.m. local time. he was a giant of a man and you cannot underestimate what he did for this country. which is nothing short of staggering. he turned it around from a sleepy back water to a thriving regional power house. there are questions now in terms of singapore's future. the next economic model, there are economic challenges there are demographic challenges and social challenges. this is going to make the next general election which should be called before january 2017 that much more interesting and one to watch. this would be a real test for the governing and the ruling at people's action party the pap. let me leave it there and hand it back. >> thank you very much. there have been a number of warnings on the impact of the surging dollar on u.s. corporate earnings this season. with some analysts warning of a, quote, earnings recession. s&p 500 results are expected to
decline 4.8% from a year ago. the first year over year decline since 2009. according to the companies with fewer than 50% decline in the u.s. that earnings double. >> wall street analysts slashed the outloobl look for the full year earnings group to 1.3%. that's down from 8.1% at the beginning of the year. earlier our colleagues on "squawk box" europe asked st. louis fed president james bullard about it. >> large multinational u.s. firms are affected by currency movements. there's no question about that. if they get surprised and their strategy isn't one that anticipated this kind of move their profitability will get hurt. you hear a lot about it when, you know, on tv and media and so there's no question about that.
and if you're investing in one of those companies then you got hit, too. i'm not saying this isn't a problem, but on the other hand these multinational firms also know that there are currency markets out there that have hedging strategies and they make a bet on that. >> i'm shocked that the $dollar would move. >> he said he's shocked that the stronger dollar is a big a concern as it is. perhaps he has a point. instead of complaining about the negative impact of a stronger dollar should deal with it and hedge accordingedly. >> right. i think that's an interesting perspective. i think the bigger picture is interesting because, of course last week we snapped three weeks of losses from u.s. equities. and i think that proceeding three weeks is something we have to get more used to. the stronger u.s. dollar is one of the factors for that. of course, coming to the end of the easing cycle is another. added to the evaluations are steep. i think we have to expect sharp
corrections every kind of couple of months now. and what we experience for the first couple of week weeks in march the final week of february is a strong indication of that. >> we look at other asset classes seem to be impacting equities. for awhile it was lower oil prices that was impacting investor sentiment. now it seems the focus is on the dollar. last week the dollar rallied stocks fell. dollar weakened and stocks rise. we take look at the stronger dollars on earnings. international revenue accounts for one-third of s&p 500 sales and more than 40% for technology materials, energy, and industrial companies. there are a lot of sectors that have so much exposure to foreign revenue and, you know, going forward if the dollar continues to strengthen you have to wonder if it will impact the way investors look at the companies. >> i think after going back to what mr. bullard was saying i don't think the dollar is out outright strong. it's not just very weak.
it was for a long period while qe was going on in the u.s. it's time rotation. it's someone's turn now. the u.s. economy is actually relatively strong. that's why they're not loosening anymore and the stronger dollar is due to lack of quantitative easing but the companies have positive outlooks and the companies have to order their strategies to play to the strength of the u.s. economy. >> it reminds me of what jack lew said last week. the stronger dollar is a good thing and it reiterates the vitality of the u.s. economy. a lot of views open the dollar. we got you the comments from james bullard. we heard from another fed official. the federal reserve bank of cleveland some parts of the equity market have been bubble like. myselfer said the fed is cognizant of the risk of creating bubbles be so far this risk has been minimal. we'll continue to get comments from the federal reserve bank of cleveland president about the markets and the economy going forward. in the meantime let's get a
run down of what to watch this trading day. february existing home sales out at 10:00 a.m. eastern time. sales likely rebounded last month from january when they fell to the lowest leaflet in nine months due to inventory shortage. stanley fisher speaking to the economic club of new york. let's take a look at the other top stories. ted cruz is throwing his hat in the ring for 2016. he tweeted early this morning i'm running for president and i hope to earn your support. the 44-year-old tea party favorite will formally launch his bid later today in virginia. he become the first major party candidate to get into the race. the new york fed could have its wings clipped by congress. politico reports two top republicans senator richard shelby and congressman jeb henzer ealing are considering a
raid over wall street and monetary policy. the plan being pushed by richard fisher would revoke the permanent position of vice chair it would be part of positions but wouldn't have an automatic vote. opec will not take on the role of supporting prices alone. he added nonmembers need to share the responsibility and should participate if prices are to recover. the u.s. futures dipped on the comments. oil near the six-year lows. brent off some 1.6% today. >> and another sell-off in oil prices. speaking of oil, the world's biggest energy companies are selling record amounts of debt this year. taking advantage of low interest rates amid the plunge in oil prices. the financial times, the total debt raised in january and february jumped 60% from the fourth quarter last year.
analyst say oil majors could be laying the ground for acquisitions borrowing to act fast if smaller produces become vulnerable. coming up on "worldwide exchange." are investors friending facebook? we talked to one of the pioneers in the social networking space. we'll be back in a couple of minutes. [ male announcer ] ours was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪ ♪
welcome back. here are your headlines. st. louis fed president james bullard bullard slugs off strong dollar fears. tenant health care is close to a $2.5 billion for united surgical partner and the race is on. republican senator ted cruz becomes the first major candidate to officially declare his run for president. greek prime minister alexis sip russ warned angela merkel that it would be impossible to service the debt. in a letter he said athens will run out of cash if the e.u. doesn't give it short term
funding. sip greece needs around $1.5 billion euros to meet the domestic obligations this month. let's get out live to berlin. the four-month extension was meant to give time for progress to be made in the talks. it seems like we're in a bigger situation of stalemate as ever. >> that's completely true. there's a lot of disappointment here from the political scene in germany as well. angela merkel was quiet all the time but interesting how she actually plays a very, very calm hand when it comes to her political style. that's nothing new, if you're an soefr observer of her politics. what we're expecting here is of course negotiations and again, angela merkel is stressing there needs to be a credible reform
list now, which actually dates back -- not dates back but should be toward the list back in december. but what we also are expecting is that we are getting a rather conciliatory tone. that meeting is also meant to restart relations between both nations. remember, just lack week we had an second word historic low point in the relations. the bad cop saying there's no trust left between both nations. so that's all on the table. it's quite a lot of topics for just one hour, and that dinner also taking place behind me in the building in the chancellor in berlin. what we're expecting to get out from the meeting is, of course, more movement from the greek side to come up with a credible reform list to come up with more
commitment, also to implement those reforms, but most likely we also will see rather a presentation of a little bit more harmony that should send a positive sign to the markets and also to brussels that negotiations actually can go on in a more amicable way. >> thank you very much. now new york's top financial regulators the latest authority investigating dooush bank. the bank is currently negotiating a settlement with the justice department according to the financial times. oversees bankers with charters in new york as well as foreign banks with branchs in the states. the retail arm could be spun off through the own stock listing. according to riteeuters. it marks a shift in the universal services adopted by many large banks. take a look at the shares of the german bank it is up about 2.3%
in today's trade. and the world's oldest bank has confirmed the chairman will resign. he told the italian daily he plans to step down. he joined the sienna-based bank in 2012 to help with turn around efforts. his shares have dropped 60%. it's basically flat. to scare date. as you can see down 53% over the last two years. and still to come on the show. we're getting in the game. we went along to the u.k.'s first e sports arena. it exists as the industry plugs into europe. we'll get more on that story coming up in two minutes. an a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network,
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and drive forward with broader possibilities. cme group: how the world advances. all right. a u.k.'s first esports arena opened the doors to gamers and enthuseiasts this weekend. it's a venture. we wept along to get in the game. >> you may think this is an audience for a football match. the crowd is here to watch people play video games. this is the u.k.'s first ever permanent esports gaming arena. the company behind the project
gfinity partnered with voouiew cinemas to transform the theater. >> we probably put a hundred thousand pounds worth of technology in here to make it worth. we'll put more and more to enhance the whole experience. >> gfinity is holding a 25-game tournament that will couple nate in a final. gamers were competing for a $74,000 prize. their game is counter strike. >> teams there are roughly between $3,000 salary a month. they get prize money. that's $20,000 for one weekend work. >> and the gamers take it just as seriously as it a job. >> roughly six or seven hours a day. four days a week. normal teams take friday and saturdays off. >> they are hoping to capitalize
on the growing movement of watching gamers battle it out in the virtual world. >> we did one event last year and we got 8.5 million people watching that one event. >> twich is another company taking full advantage of the trend. the website which streams online gaming was bought by amazon last year for more than $1 billion. could we see permanent gaming arenas spread out around the world? >> we have ambitious plans to attract the people watching but to enhance the grassroots experience. we're providing online tournaments and tournaments throughout this country and other countries to allow people who are casual gamers to have a much better experience than they're having now. >> so maybe just maybe all those hours spent as a kid playing video games might just be worth it. it. >> you can find out how much the
players are making by going to cnbc. >> i'm been trying to get seema out to socialize but she never does because she's a geek when it comes to the gaming. >> absolutely. i love my game boy. super mario bros. is that out? i'm not sure. when it comes to esports. it's a fascinating concept. people buying tickets to go to an arena and watch people play games. not physical games they're sitting there playing their video game. >> i know. i can't get my head around. it's the first esports arena london. it doesn't look like the turnout was massive yet. still to come on "worldwide exchange." just a week after israeli election we take a check on the equity markets with the ceo of the tel-aviv stock exchange. in a couple of minutes. also u.s. futures after the rally on friday after the dollar weakened. can it continue?
and you're watching "worldwide exchange." welcome everyone i'm seema moody. >> are your headlines from around the world. >> wall street worries about the impact of the surging dollar on corporate earnings but st. louis fed president jaerms bullard tells cnbc the greenback is not far from value. >> i'm not saying this isn't a
problem, but on the other hand the multinational firms know there are currency markets out there that have hedging strategies and they make a bet. intense negotiations expected in berlin as greek prime minister alexis sip russ prepares to meet with angela merkel. >> ted cruz announces he's running for the white house on twitter. becoming the first major party candidate to get into the race. >> tenet health care is close to a deal to buy united surgical partners for more than $2.5 billion as it responds to changes in the u.s. health care system. and welcome everyone to the show. you're watching "worldwide exchange." a weaker u.s. dollar helped fuel gains on wall street but a different picture this monday morning with a dow down just about 29s in premarket trade.
concerns about the stronger dollar and the negative impact on profitability. in terms of what we saw in last week's trade, that dubbish statement from the fed fuelling stocks higher. in fact health care was the best performing sector last week gaining about 2%. again, the concern and the focus this week though will be on the stronger dollar. here in europe we're looking at a lot of round figure with the xetra dax down and ftse 100 broke a milestone on friday. it continues to trade above the milestone but down about 10 points in today's trade. the xetra dax down about 40 points. the crank 40 down about 38 points. talks around greece's financial structure will be something that traders watch. ongoing discussions and talks taking place between greek prime minister alexis tsipras and
angela merkel. our colleagues on "squawk box" europe asked james bullard why lower oil prices had not boosted consumption. >> it is a big part of the budget especially for lower income consumers in the u.s. they're not sure there is for real and that, you know these prices are going to stay this low persistently. as it becomes more apparent this is a persistent shock they'll start to change behavior. i expect the pick up to come more in the second half of 2015 and into 2016 than what we've seen so far. >> and we're once again looking at oil prices trading lower right now. wti crude at $45.67. down about 2%. the internal gauge around 54.70 down about 1%. let's take a look at the top stories. tenet health care is close to a deal to buy united surgical
partners for more than $2.5. united surgical is controlled by a private equity firm. it operates more than 200 firms. tenet's stock has done well lately. outperforming the s&p 500. shares in frankfurt it's up about 2.7% today. starbucks baa ss will stop writing "race together" on coffee cups. it was part of a initiative to stimulate talks about racial issues in u.s. it was a phase of the effort. the campaign launched last week was criticized by the starbuck employees. the company didn't expect universal praise. the bank of israel unveils the latest decision this week. a week after benjamin netanyahu
swept a victory. stocks rally last week. several other analysts disagreed. meanwhile the tel-aviv stock exchange is eyeing new rules to incentivize medium sized firms to ipo. they opt for buyouts or choose to list on the tech heavy nasdaq. joining us now is yossi beinart. good morning. thank you for joining us. let's kick off with the second story. your drive to try to encourage more firms to list domestically and not to look abroad. what kind of measures are you implementing to make sure that happens going forward? >> yes, as you mentioned, we see a trend of companies that are exiting the market probably too soon when they reach growth they go to the united states or sometimes to london. the measures include the
proposed last year in parliament parliament. various things such as companies being able to report in english. we're going to encourage companies by providing research from the exchange sponsored by the exchange so investors worldwide in israel will have better information. we believe that lowering regulations and performing more with what is correct -- what is available in the united states or europe would help companies. >> do you think liquidity is a part of problem? how does an exchange like your own, which is between emerging and developed data make sure it progresses on to the world stage and develop size if you will? >> absolutely. liquidity is one of the huge. this week we're announcing a joint venture with the united states with an index. we look at israeli companies listed in tel-aviv and companies that trade in the united states.
indexes like that will help construct worldwide and increase liquidity. >> the nasdaq has become a popular destination for israeli companies. israel accounts for the second largest number of foreign listings after china. what do you need to do to win back business and get more companies to list on the tel-aviv stock exchange? >> well, i think companies that reach a certain size and if their ecosystem is actually the united states and they seem to get better evaluation in the united states. it's legitimate for them to list whenever they need. and we have about 42 companies that dually listed. they listed in london and tel-aviv. there's a lot of liquidity in tel-aviv. some companies see as much as 30% of the trading done on the exchange that's good. we hope to lure them in. hopefully when they do they see an increase in tradeing.
especially israeli institutions know them they'll trade them more. >> and the turmoil weighed on trading volumes in the past. what would you say to an investor who wants to get exposure to the israeli growth stories but doesn't want to be subject to that volatileityvolatility? >> if you look back at the last 15 years, the israeli stock market is more influenced by economic trends in the world than local security issues. every time there was a skirmish between the south and north, one would expect a lot of volatility but it hasn't happened. we saw volatility in 2008 like the rest of the world. generally speaking the stock market in israel is most concerned about is the world economy. we're an export based economy. and 30% to the states 30% to europe, and 30% to the far east. one area of the world is okay
we'll flour richish. still to come on "worldwide exchange." the u.s. presidential election is more than 18 months away the first major party candidate decided to jump into the race. details straight after the short break. k state, we're reinventing how we do business so businesses can reinvent the world. from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny business incubators that partner companies with universities, and venture capital funding for high growth industries. see how new york can grow your business and create jobs. visit ny.gov/business
despite concerns around the strengthening dollar. nasdaq pushing higher and breaking 5,000. and on the verge of breaking on the record close. interesting enough it's not just apple and tech stocks that have been driving the index higher. bio tech gained better than 6%. one of the bright spots after posting encouraging alzheimer's data. closing at the highest level in 15 years. we have to keep an eye on the tech heavy index. >> not just the nasdaq hitting all time highs. the ftse 100 crossed 7,000 on friday finishing at the all time high. still above 7,000. republican senator ted cruz has confirmed by twitter he'll run for the party's nomination in the 2016 presidential race. the 44-year-old texan is the first candidate to officially enter the battle. let's get out to washington and richard jordan joins us with more on the story.
richard, over to you. >> reporter: good morning. ted cruz the first to make it official. trying to get a head start in the presidential race. he did post a 30-second video overnight on twitter and then the message that read "i'm running for president and i hope to earn your support" he's expected to repeat that message later on today in lynch burg virginia at liberty university. this is jerry fallwell's evangelical christian school. this is where ted cruz has the core base of conservatives. instead of going to texas or iowa or new hampshire he's choosing to go to virginia where he believes he'll have a large group of supporters there around him and will lay out his plan for his campaign. that starts today. now just this month an nbc news wall street journal poll asked republican primary voters if they could see themselves supporting ted cruz for president. 40% of them said yes. that put cruz eighth on the list. there's seven other republican
candidates who came ahead of him in that poll. so he has a lot of ground to cover. as the first person in the race he's getting a head start. >> thank you very much richard. it's not just millennials that are using social media. wreath wall street is going online to discuss the next big stock idea. the ceo of sum zero joins us now. an online community for hedge fund research. a pleasure to have you on. and of course sum zero many sometimes seen as the social network of wall street. can it see similar success here in europe? >> i hope so. the basic concept is to create an online community for professional investors, specifically hedge fund and mutual fund professionals as well as private equity analysts. and we've basically created the world's largest repository of research to contrast with
research coming from wall street from the south side. and, you know, right now we have 10,000 and change in terms of members on the site. many of them are located in the major financial markets so new york, chicago, boston. we've had a core group in london as well. we would love to see more presence in europe just get in the concentration of hedge fund assets in london itself. so it's definitely, you know. >> it's interesting this concept. i used to work -- the sale side always pushing their research out to everyone. the buy side very secretive about the research. how are you encouraging people to be more open with that type of stuff. surely there are a lot of internal compliance laws and stuff like that you have to abide by. >> we give incentives to members to share their own research. one of which is simple that is by sharing research you get access to everyone else's research. we leverage resciprocity to our
advantage. and we think as long as you believe other intelligent investors out there and you value their opinions being able to access a vast pool of their, you know, their insight, we think is valuable. in addition we provide all kinds of career incentives to compel people to share research. for example if you're a merging manager you're trying to raise assets. you're trying to grow your fund. there are 200 family offices that specifically go to sumzero to see who they want to engage with based on the quality of their research. we run contests as well. >> speaking of contests you recently announced the warren buffett challenge around those who use warren buffett's investment strategy. what has demand been like? what are you seen so far? >> the idea behind the challenge is to, you know compel people to post ideas.
people that warren might consider buying next. what will warren buy next? it starts on april 1st. there's a little bit of time before the contest starts. you know, we're probably going to be seeing a lot of large cap names, you know, with good cash flows and attractive evaluations and competitive advantages and motes around their business. that's your typical warren buffett style investment, but it starts in april. it's sumzero.com the buffett challenge. the unique thing about the contest unlike other contests we've run, anybody can submit a piece of research into the contest. the rewards are awesome, too. one is a dinner with a warren buffett disciple and runs a large fund in the u.s. it's been 11 years since connectyou. i want your thoughts on
facebook. it's grown into a company that has a market cap of $230 billion. can it run further? >> i think facebook's probably one of the few large cap growth sort of stocks that actually trades that is still a fairly attractive evaluation. you know, you're seeing a company with 50 plus% top line growth trading at 25 times in a 2011 basis. it's not bad compared to a lot of other names in the markets today. i think you have all kinds of opportunity what is out with instagram and people talked about instagram being a real steal given kind of where they the evaluation for that. but i think there's a long runway ahead for the company. they've barely begun to monotize kind of those assets and, you know, the core business has been somewhat of a rocket ship. i think there's kind of plenty of room. >> is there something that
twitter can learn from facebook? that hasn't been the same story. >> i mean, twitter is obviously, you know a smaller kind of network. different use case. i think the challenge twitter is going to face is that facebook itself has so much views. if you go to facebook today, you'll see how much news is a presence on your main feed in terms behalf is trending and in addition what people are posting. you know, what facebook is probably pushing to users as well but, you know, i think twitter, you know, as long as they're able to simplify their interface we should see continued growth as well. >> a little bit of a rebound in the stock as well. thank you for joining us. great to get your perspective. i'm going to bring you flashes come ought of the kremlin. saying that kiev is not fulfilling a agreement on conflicts in east ukraine and they're saying that france and
germany should be held responsible for those violations of the agreement. so stirring the pot there a little bit the kremlin on the ongoing debate. as we head to break reminder of the headlines. james bullard slugs off strong dollar. tenet health care is close to a $2.5 million deal for united surgical. ted cruz becomes the first major candidate to declare his run for president.
[ male announcer ] ours was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪ ♪ let's have a look at the european markets. they're acting sharply today following, of course, a couple of good weeks of strong gains. not quite as strong last week as the ftse 100 and u.s. equities.
none the -- nonetheless. those meetings today taking place between chancellor merkel and mr. tsipras for greece. ftse 100 still just above 7,000 after closing on friday at an all time high. >> stocks seeing the first weekly gain in four weeks. u.s. futures pointing to a lower er open. the dow down 45 points. february existing home sales out at 10:00 a.m. eastern. sales likely rebounded last month from january when they fell to the lowest level in nine months due to an inventory shortage. this afternoon, fed vice chairman stanley fisher speaks to the economic club of new york. now earlier our colleagues on "squawk box" europe asked james bullard about the risk of
delaying an interest rate hike. listen in. >> if we wait too long, then, you know, people are going to say we're behind the curve. we have to make a bigger move but i don't think we're in that position yet. >> joining us now founder and president -- do you think the statement the excitement or the bullishness around what janet yellen said can that pull into this week as well? >> it will. there's no question about it. you have to give some kudos to the fed. i think they positioned themselves for the move very well. if the expectations get higher and higher and the clock's time frame gets shorter and shorter. they tempered that june date so well with the last meeting after that. but i think now as you hear we get closer toward september and i think that's the implementation and the last thing we heard was december would be too late. the market wants it now but the
at the end of the day i think higher rates is healthy for everyone in the market but just not so soon. >> we heard mr. bullard earlier say he felt it was the ecb that was driving the euro dollar. do you think that's a fair assessment or do you think the u.s. dollar has strength and stock correction last week is driven by what is happening state side? >> well, i think the dollar the steepest cent has been to a certain extent the story has to muddle. that's one of the reasons the arrow pushed back the ecb. i think it's more political vernacular than anything. it is the ecb side of the coin that is going to drive certain markets steeper than others. that being said i think the dollar is in for a continued rally, but at this point, a tampered one and i think some of these levels not on the euro side but specifically a great
example the british pound it violates 150 and remains below here. i think that's one of the reasons you'll see a flat line in the dollar. the impetus is on the ecb now. i think we'll get good news out of that. >> michael, thank you very much if for joining us today. michael girken. it's been one year since michael lewis made waves with his book "flash boys." today the paper back edition is released a new preface. lewis will be on power lunch to discuss at 1:00 p.m. eastern time. >> yeah. you don't want to miss it. european markets have gone up a little bit over the last half hour. after a decent week last week. that's all we've got time here on "worldwide exchange." >> have a great day everyone. "squawk box" is next.
r tantrum? jim bullard fears the answer could be yes. we have the warning for investors. oil prices dropping again today. the latest cad list saudi arabia said it will not cut output alone. new this morning ted cruz makes it official. the republican senator declares himself a candidate for the white house. it's monday march 23rd 2015. and "squawk box" begins right now.
good morning everybody. welcome to "squawk box" on cnbc. andrew is off today. even before this morning's drop in crude drivers have been seeing prices falling at the pump. the average price of a gallon of regular at $2.50. that's down 4 cents in the last two weeks. that's a notable change because prices bottomed out on january 23rd and had been rising since then. right now gasoline prices are about $1.06 lower than a year ago. oil prices dropping sharply again this morning. joe mentioned saudi arabia. over the weekend the kingdom said it would not cut the output to defend prices. saudi's oil minister telling reporters that opec's biggest producer would only consider output cuts in corporation with nonopec producers. that has to be a shot with what we've seen happening in the united states. unfortunately for them there's no way you can get the united states to go along with this.